Asset managers anticipate increased investments in Bitcoin ETFs, while challenges persist for Coinbase. SEC's silence on Ethereum ETF raises concerns. Ubisoft joins XPLA blockchain as validator. Coinbase plans $1 billion convertible notes offer.
Financial analysts anticipate a surge in investments flowing into Bitcoin (BTC) exchange-traded funds (ETFs) during the latter part of 2024. Bitwise, for instance, has engaged in thorough due diligence discussions with institutional investors representing substantial assets, expressing interest in incorporating or augmenting exposure to Bitcoin ETFs in the upcoming months.
Matt Hougan, Bitwise’s chief investment officer, conveyed in a communication to investors that numerous individual investors, family offices, hedge funds, and venture capital entities are ready to bolster their positions in spot Bitcoin ETFs by the conclusion of June.
Foreign investors also display keen interest in Bitcoin ETFs. The Securities and Exchange Commission of Thailand purportedly revised its regulations to permit private funds to invest in spot Bitcoin ETFs traded on U.S. exchanges. Similarly, Brazil recently adopted a similar stance, enabling investors to access BlackRock’s ETF through depositary receipts.
Despite the heightened enthusiasm surrounding Bitcoin, Coinbase faces challenges in maintaining its cash flow. The exchange intends to generate $1 billion through senior convertible notes to settle previous debt obligations.
Alongside the fervor surrounding Bitcoin, this edition of Crypto Biz delves into the prospects of Ether (ETH) ETFs, Ubisoft’s involvement as an XPLA validator, Coinbase’s hurdles, and the integration of blockchain technology by global banking institutions.
SEC’s Silence on Ethereum ETF Raises Concerns, Says Bloomberg Analyst
The absence of communication from the U.S. Securities and Exchange Commission (SEC) regarding Ether ETFs to issuers might signal negative implications for those anticipating approvals by May. Bloomberg ETF analyst Eric Balchunas expressed concerns, downgrading the likelihood of Ether ETF approval to just 35%. Balchunas highlighted that with less than 70 days remaining until the final deadline, the SEC's lack of engagement is unsettling. He also speculated that Gary Gensler's perspective on Ether, still considering it a security, could influence the decision-making process.
Ubisoft Joins XPLA Blockchain as a Validator
Ubisoft, renowned for producing popular gaming franchises such as Assassin’s Creed and Far Cry, has become a node validator on the XPLA blockchain. According to XPLA’s press release, Ubisoft will actively engage in governance decisions as part of this collaboration. As one of Europe’s largest gaming companies with a market capitalization close to $2.75 billion, Ubisoft’s participation underscores the growing intersection between gaming and blockchain technology.
Coinbase’s Stock Declines Post Announcement of $1 Billion Convertible Notes Offer
Crypto exchange Coinbase announced its plan to raise $1 billion through senior convertible notes to address existing debts and for general corporate purposes. These notes will be privately offered exclusively to eligible institutional buyers and are due for repayment by April 1, 2030, unless redeemed earlier. The issuance of these notes, senior to common stock, reflects Coinbase’s strategic financial planning to manage its debt obligations effectively.
Global Banks Engage in Extensive Blockchain Pilot Test
Leading financial institutions including Goldman Sachs, BNY Mellon, and Cboe Global Markets have concluded a large-scale pilot test leveraging blockchain technology. Over 350 simulated transactions were executed by institutional investors via distributed ledger technology on the Canton network, facilitated by startup Digital Asset Holdings. This pilot test, involving various stakeholders ranging from asset managers to custodians, underscores the growing acceptance and adoption of blockchain within traditional financial systems.
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